The last time that happened was at the depths of the financial crisis in 2008-2009
Treasury bond yields are plunging because investors are bidding up bond prices in a rush to safety from macroeconomic fears such as trade wars and geopolitical turmoil. When bond prices rise, yields fall.
This August one couldn’t have called it better: long precious metals, short yuan, and short equities
Those are the three legs of Crescat Capital’s “macro trade of the century,” and together they netted a 16% gain for the fund in the early days of August.
Crescat Capital founder Kevin Smith, therefore, has cause for celebration.
The yellow metal will benefit from the looming “paradigm shift” in investing, he says
According to Ray Dalio, chief of Bridgewater Associates, the ongoing party in stocks will soon run its course. Investors are likely to head for the exits amidst lower returns on equities, seeking other assets to invest in.